Ep43: Dan Gramza – Don’t Let Overconfidence Ruin Your Trading Strategy

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Guest profile

Dan Gramza is President of Gramza Capital Management, Inc. He is a trader, consultant to domestic and international clients, an advisor to hedge funds, a developer of ETF / ETC securities and co-inventor of two issued security patents. He has published works and has appeared on numerous media outlets around the world. He set up and ran stock and futures proprietary trading operations, given expert witness testimony in US Federal court, has presented courses to traders from over 36 exchanges, 450 institutions, four regulators in 35 countries and provides free daily commentary on 21 markets at dangramza.com which is viewed in over 150 countries.

Listen from Dan as he unveils his journey in trading, how his past experiences made him develop his strategies and how it made him a success in his fields. Learn from him in this another episode of losing and winning it all.


I find looking at my losses refreshing, and the reason I do is my loss has had taught me trades as well.”

Dan Gramza


Topics Covered:

01:49 – Dan narrates his academic background and how he ended up successfully teaching from stock options to the Board of Trade

04:45 – His realizations when compared from his first year of teaching up to the present and the remarkable changes it made him

06:06 – Andrew shares his journey in teaching and a finance person and how experience and to focus tremendously helped him through

09:38 – How one good day turned the opposite and became his worst investment experience

17:00 – What he learned from this loss and other self-realization

19:59 – Telling about his investigation process and the three strategic questions he asked himself

22:27 – Andrew summarizes his takeaways

28:50 – Advice from Dan to avoid the same fate he did

32:03 – Parting words from Dan: “I find looking at my losses refreshing, and the reason I do is my loss has had taught me trades as well. My losses tell me, am I following my strategy? Am I not? My strategy has something changed. So, the losses are a significant parameter that I don’t think, no matter how successful we are, we don’t want to forget about.”

Main Takeaways:

Lesson 1: “Risk is a beautiful thing. It’s just a matter of how you and I manage it.”– Dan Gramza

Lesson 2: “Whatever your strategy is, find the one that’s right for you. Find the books that are right for you. Find the teachers that are right for you and start to implement your strategy. There’s nothing wrong with that.”– Andrew Stotz

Lesson 3: “Understanding your modeling, questioning your model is critical.”– Andrew Stotz

Lesson 4: “It’s important that we understand the strength and weaknesses of anything that we use to expose capital to the market to risk by that, when does it work, when does it not work?”– Andrew Stotz

Lesson 5: “Make sure you’ve got your system. Don’t let your thinking in your emotion in the middle of it, shut it down. Follow your system.”– Andrew Stotz

Lesson 6: “We should always have our risk management plan before we ever exposed capital because we don’t know when it’s not going to work, and every trade is not going to work.”– Dan Gramza

Lesson 7: “One of the biggest challenges for traders or investors is being patient enough to wait until we have the answers to those questions. Being patient enough to wait until the market gives us that opportunity. Being patient enough, once we get into a trade, to let the trade do its job and all those things I violated in some ways.”– Dan Gramza

Lesson 8: “Plan your work, work your plan.  Plan your trade, trade your plan.”– Andrew Stotz

Connect with Dan Gramza:

Andrew’s books

Andrew’s online programs

Connect with Andrew Stotz:

About the show & host, Andrew Stotz

Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.

Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.

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